After a near-final $1 billion deal collapsed in May 2023, officials at Embracer Group were forced to announce tough austerity measures in June. Now, as part of its latest Q2 2023 financial report, there has been a preliminary interim conclusion, which includes 900 terminated employees, several closed studios and 15 halted projects.
after A $1 billion deal that was nearly completed in May has fallen throughOfficials had to do this Embracer Group announced tough austerity measures in June. Campfire Cabal and Volition (Saints Row) studios have closed effective immediately. With Free Radical (where a new TimeSplitters was supposed to be created), it looks like the next studio is on the verge of completion (source). There were other layoffs at Crystal Dynamics, BeamDog, Cryptic Studios, Rainbow Studios, Zen Studios, Gearbox Publishing, Plucky Bytes, and A Thinking Ape. In September, reports also emerged that decision makers in… It appears that Embracer is selling to Gearbox Entertainment Company (Borderlands). Wants.
Interim conclusion thanks to the quarterly report
But where does Embracer Group stand after all these measures? A recently published article reveals a tentative finding Financial report for the second quarter of 2023. Here are the most important numbers:
- Although net sales increased by 13 percent compared to the second quarter of the previous year, this increase did not come from organic growth (-2 percent).
- The PC and console games segment registered a decline (-5 percent, -17 percent organic growth). However, they were very satisfied with the releases of Dead Island 2 and Remnant 2. Payday 3 failed to live up to expectations.
- Mobile games registered slight growth (+2 percent, -10 percent organic growth).
- The most positive things happened in the areas of tabletop gaming (+25 percent, +15 percent organic growth) and entertainment and services (+76 percent, +13 percent organic growth) – especially thanks to strong licensing income across Middle-earth businesses for the trading card game The Lord of the Rings: Tales of Middle-earth from Magic: The Gathering, but also thanks to the powerful quarter of Asmodee.
CEO Lars Wingfors also revealed the impact of austerity measures so far: During the quarter, around 900 jobs were cut, several studios were closed and 15 previously unannounced projects were halted (Via the gaming economy). More measures are scheduled to follow by the end of the financial year in March 2024. The bottom line is that everything is going according to plan, bittersweet though that may seem to those affected.
Many exciting games are expected for fiscal year 2023/24, including Homeworld 3, South Park: Snow Day!, Arizona Sunshine 2, Expeditions: A MudRunner Game, Alone in the Dark, Outcast – A New Beginning, Lightyear Frontier, And Deep Rock. Survivors of the galaxy. The developers at Saber Interactive are also hard at work on Warhammer 40,000: Space Marine 2.